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A. A Machine that originally cost $25,000 and was depreciated on a straight-line basis has one year of its expected 5-year life remaining. Assume a
A. A Machine that originally cost $25,000 and was depreciated on a straight-line basis has one year of its expected 5-year life remaining. Assume a salvage value of $0. Its current market value is $12,000. The corporate average tax rate is 30% while the marginal tax rate is 34%. The gain or loss on selling the machine is _______. The cash flow from disposing the old machine is ________
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